The important insurance policies small business owners are overlooking

The important insurance policies small business owners are overlooking

"When Hurricane Sandy hit New York City in October 2012, it was a real blow to Lior Rachmany’s small business, Dumbo Moving + Storage. Although Rachmany had property insurance, he didn’t have a dedicated flood insurance policy, which meant he wasn’t covered for the rising waters of a storm surge. Machine movers, hand trucks and carts that were stored in the company’s basement were all ruined, and replacement costs were fully his company’s responsibility. “Because we didn’t have flood insurance at the time, all of the money we spent on the equipment was lost,” Rachmany says. “After Sandy, we learned our lesson and were afraid of losing anything else to future natural disasters or accidents.”

In the months following the storm, Rachmany raised the limit of coverage for all of his company’s moving vehicles from $750,000 to $1,000,000 per vehicle. He also purchased flood insurance regulated by FEMA, which costs his business around $13,000 a year." - Jean Chatzky